Use the Table for the Question(s)below

question 15

Multiple Choice

Use the table for the question(s) below.
The founders and owners of a private company have funded it through the following rounds of investment:
The owners decide to take the company public through an IPO,issuing 1 million new shares.Assuming that they successfully complete the IPO,the net income for the next year is estimated to be $5 million.The price of shares is set using average price-earnings ratios for similar businesses of 17.0.
-What portion of the company will be owned by the angel investor after the IPO?

• A)12%
• B)16%
• C)22%
• D)30%
• E)33%

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Definitions:

Kerosene Components

Kerosene components refer to the mixture of hydrocarbons derived from petroleum, used primarily as fuel in heating and aircraft engines.

Flammable Liquid

A liquid substance capable of catching fire and burning easily in the presence of an ignition source.

Light Gas Fraction

A portion of the distillate in petroleum refining that is composed of the lighter hydrocarbons, such as methane, ethane, propane, and butane.

Crude Oil

A natural, unrefined petroleum product composed of hydrocarbon deposits and other organic materials.